A number of managerial issues have been
identified as important to new business success. We have
selected eight areas of management that have been examined in
prior research: (1) coping with government regulations, (2)
developing good relations with unions, (3) finding qualified
people, (4) selecting lawyers and accountants, (5) coordinating,
motivating, and compensating personnel, (6) minimizing startup
team conflicts, (7) finding qualified executives, and (8)
establishing goals and strategic plans. Prior research
provides no guidance for predicting which of these are
"strategic" assets of new ventures, or whether problem
solving for some of them is more critical for developing
strategic competencies than others. Thus, our examination of
their implication for the success and survival for a new firm is
exploratory.

Coping with Government Regulations. The
intricacies of government regulations at the federal, state, and
local levels proves challenging for all firms. For new firms,
greater difficulties are posed because in many cases on prior
knowledge base has been developed. Regulatory matters as well as
deregulation have been identified as important to firm success
(Bird, 1989; Park, 1983).

Developing Good Relations with Unions. Though union
membership has diminished sharply in the US, certain sectors
continue to be dominated by union labor. Miles (1989)
foresees regional unions which provide portable benefits to
employees in geographical regions. Such union "pools"
may be important to entrepreneurial success. Further, collective
bargaining contracts shape employee relations and possess the
ability to disrupt business (Hannan, 1995).

Finding Qualified People. Attracting qualified
employees was found to be directly related to better market
response (Mullins, 1996). Sexton et al (1997) noted that
entrepreneurs reported hiring skills were among those most
highly desired by fast growing firms. In discussing
pitfalls of entrepreneurial firms, Hogarty (1993) suggests that
too many entrepreneurs were quick to hire and slow to fire.
Selecting Lawyers and Accountants. Substantial advice and
guidance is needed to successfully handle the myriad of legal
requirements necessary for establishing a business. Key
among those who provide such advice are lawyers and accountants.
Park (1983) found that as businesses grow, legal matters increase
in importance for the new firm.

Coordinating, Motivating, and Compensating Personnel.
Compensation for associates and motivation for growth were among
the top ten entrepreneurial learning needs reported in a survey
conducted by Sexton et al (1997). Jones, Morris, and
Rockmore (1995) examined entrepreneurial companies and found that
an entrepreneurial orientation encouraged higher levels of
employee involvement, set salary level through market
comparisons, and relied more on external sources for job
candidates.

Minimizing Startup Team Conflicts. Carter, Gartner, and
Reynolds (1996) found that nascent entrepreneurs who actually
started businesses were aggressive in organizing a startup team
and forming a legal entity. To begin a business, entrepreneurs
took on more of the day-to-day activities. This action
orientation suggests that teamwork was valued. Conflicts
did not block forming a legal entity.

Establishing Goals and Strategic Plans. Tellis
and Golder (1996) found that pioneering firms that fail in the
early stage, fail as a result of poor strategic planning. Careful
planning to examine the direction of the business, the issues and
foreseeable problems as well as the financial needs are critical
factors to firm success (Chittipeddi and Wallett, 1991).